Bring Dreams to Life Fíoraítear Aislingí - National Lottery

Report of the DirectorsTuarascáil na StiúrthóiríThe Directors have pleasure in submitting their twentysecond annual report, together with the audited financialstatements of the Company, for the year ended 31December 2008, in fulfilment of their obligations underthe Companies Acts, 1963 to 2006.1. The CompanyThe Company carries on the business of operating theNational Lottery under Licence from the Minister for Finance inaccordance with the provisions of the National Lottery Act, 1986.80% of the issued share capital is held by An Post and 20% is heldby the Minister for Finance.2. Results for the YearThe results for the year are set out on page 40.3. Business ReviewThe information required by Section 13 of the Companies(Amendment) Act, 1986, on the development of the businessand important events, is included in the Chairman’s Statementand Review of Operations on pages 2 to 23. As described therein,the performance of the Company was again very positive withsales growing by 7.9%, in part driven by strong Lotto growth, theintroduction of the Monday Million game in 2008 and the fullyear of EuroMillions Plus.As a result, €268 million was raised for the Beneficiary Fund in2008, compared to €245 million in 2007.In monitoring the Company’s performance, the Directorsand management have regard to a range of key performanceindicators (KPIs).KPI 2008 2007Prizes as a percentage of sales 54.1% 54.1%Operating costs as a percentage of sales 14.0% 14.4%Surplus earned as a percentage of sales 31.9% 31.5%Spend per capita €189.97 €179.42Number of retail outlets 3,675 3,623The above KPIs are within the terms of the Licence to operate theNational Lottery.The key risks and uncertainties facing the future development ofthe Company include the retention of the Company’s licence tooperate the National Lottery, the Company’s significant relianceupon its IT infrastructure and retailer operations, the impact ofgeneral economic factors on the Company and the introductionof new games and channels. The Directors have developed arange of strategies to address these and other risks faced by theCompany. The Corporate Governance Statement on page 27 setsout the Company’s policies and approach to risks and the relatedinternal control procedures and responsibilities.4. Directors, Secretary and their interestsThe Directors of the Company are appointed by the Minister forFinance for a fixed term, usually three years, and their conditionsof appointment and fees are set out in writing.The terms of office of Donal Connell, James Hyland and BarbaraPatton expired on 5 November 2008. Donal Connell and JamesHyland were re-appointed from that date and Barbara Pattonwas re-appointed on 4 December 2008. Oliver Wilkinson wasappointed to the Board on 30 May 2008.The Directors and Secretary who held office at 31 December2008 had no interest in the shares in, or debentures of, theCompany or any Group Company.Is cúis áthais do na Stiúrthóirí a dara tuarascáil bhliantúil isfiche a chur i láthair, maille le ráitis airgeadais iniúchta anChomhlachta, don bhliain dar críoch 31 Nollaig 2008 agus,dá réir, a gcuid dualgas faoi Achtanna na gCuideachtaí 1963go 2006 a chomhlíonadh.1. An ComhlachtRitheann an Comhlacht a ghnó chun an Crannchur Náisiúnta areáchtáil le Ceadúnas ón Aire Airgeadais faoi réir fhorálacha anAchta um Chrannchur Náisiúnta, 1986.Tá 80% den scairchaipiteal eisithe i lámha An Post agus tá 20%ag an Aire Airgeadais.2. Torthaí na BlianaTá torthaí na bliana leagtha amach ar leathanach 40.3. Athbhreithniú GnóTá an t-eolas a éilítear faoi réir Alt 13 d’Acht na gCuideachtaí(Leasú) 1986, ar fhorbairt an ghnó agus ar imeachtaítábhachtacha, clúdaithe i Ráiteas an Chathaoirligh agus sanAthbhreithniú Oibríochtaí ar leathanaigh 2 go 23. Mar a ríomhtaransin, bhí feidhmiú an Chomhlachta an-dearfach arís agus fás7.9% ar an díolaíocht, mar thoradh cuid mhór ar fhás láidir anLotto, ar thabhairt isteach chluiche Monday Million i 2008 agusar bhliain iomlán de EuroMillions Plus.Mar thoradh air seo, gnóthaíodh €268 milliún do chistena dtairbhithe i 2008 i gcomparáid le €245 milliún i 2007.Agus monatóireacht á dhéanamh acu ar fheidhmiú anchomhlachta, tógann na Stiúrthóirí agus an bhainistíochtaird ar raon d’eochairtháscairí feidhmiúcháin (ETFanna).ETF 2008 2007Duaiseanna mar chéatadán den díolachán 54.1% 54.1%Costais oibríochta mar chéatadánden díolachán 14.0% 14.4%Barrachas tuillte mar chéatadánden díolachán 31.9% 31.5%Caiteachas per capita €189.97 €179.42Líon na n-asraon miondíola 3,675 3,623Tá na EFTanna thuasluaite taobh istigh de théarmaí ancheadúnais chun an Crannchur Náisiúnta a reáchtáil.I measc na n-eochair-rioscaí agus na neamhchinnteachtaíatá ar aghaidh fhorbairt an Chomhlachta amach sa todhchaítá coinneáil cheadúnas an Chomhlachta chun an CrannchurNáisiúnta a reáchtáil, spleáchas suntasach an Chomhlachta ara bhonneagar theicneolaíocht faisnéise, an éifeacht a bheidh agtosca ginearálta eacnamaíochta ar an gComhlacht agus tabhairtisteach chluichí agus chainéil nua. Tá na Stiúrthóirí tar éisraon straitéisí a cheapadh chun déileáil leo seo agus le rioscaíeile a gcaitheann an Comhlacht aghaidh a thabhairt orthu. Tápolasaithe agus cur chuige an Chomhlachta maidir le rioscaíagus na gnáthaimh inmheánacha rialaithe gaolmhara leagthaamach sa Ráiteas ar Rialachas Corparáide ar leathanach 27.4. Stiúrthóirí, Rúnaí agus a leas tairbhiúilIs é an tAire Airgeadais a cheapann Stiúrthóirí an Chomhlachtado thréimhse réamhshocraithe, trí bliana sa ghnáthshlí, agusleagtar amach a dtéarmaí ceapacháin agus a dtáillí i scríbhinn.Tháinig tréimhsí oifige Donal Connell, James Hyland agusBarbara Patton chun críche ar 5 Samhain 2008. AthcheapadhDonal Connell agus James Hyland ón dáta sin ar aghaidh agusathcheapadh Barbara Patton ar 4 Nollaig 2008. Ceapadh OliverWilkinson ar an mBord ar 30 Bealtaine 2008.Ní raibh leas tairbhiúil sna scaireanna sa Chomhlacht násna bintiúir a bhain leis nó le haon Ghrúp-Chuideachta agna Stiúrthóirí ná ag an Rúnaí a bhí in oifig ar 31 Nollaig 2008.26National Lottery Annual Report 2008